Daily Report 310717 2017-07-31
Macto Economy
On the domestic side, financial sector regulation is continuing, but the regulatory center has begun to focus on the shadow banking sector rather than the bond market. China Banking Regulatory Commission pointed out at the work forum to tightly guard against liquidity risk, pay close attention to the bank's real estate and local government financing behavior; China Insurance Regulatory Commission Vice Chairman Chen Wenhui said, can not make the insurance institutions alienated as a small number of financing platform. China's National Bureau of Statistics (NBS) will release its manufacturing PMI in July at 9 am, while the estimate from the Bloomberg survey fell from 51.7 to 51.5 in June, still above 50.
Zinc and Lead
Last Friday LME Zinc and Lead tendency was differentiated. LME Zinc closed at $2785/ton. LME Lead closed at $2328/ton. Shanghai Zinc and Lead narrowed fluctuated following overseas section. The recent report shows that the output of the mine in the second quarter shows a significant increase in production in the second quarter, and the recovery of the upstream zinc production is orderly. Although short-term zinc ingot shortage still exists, it is difficult to continue for a long time. Operation point of view, the current dollar index is too weak, leading to the overall strong commodity markets, zinc prices may continue to fluctuate with high volatility.
Friday copper market meets bolster at 5-days average line. Copper price narrowly fluctuated at high positon. LME inventory last Friday decreased 1550 tons to 301000 tons. Actuals discount narrowed $2.25 to discount $29.5. Totally, previous domestic macro-economy data is better than expected, which promotes market bullish enthusiasm. The market expectation of China's demand is optimistic; the dollar is also weak to rebound in copper prices added momentum. Considering previous explicit inventory turning into invisible, and financial regulation is still strict, copper price still meets all kinds of risk.
                                                                      Dong LV (Investment Certificate NO. TZ008452)